Neo opens Europe's first rare-earth magnet plant

Neo Performance Materials has opened a $75 million rare-earth magnet manufacturing plant in Narva, Estonia, becoming the first facility in Europe capable of mass-producing magnets for automotive and wind-energy applications.
Initial output targets 2,000 tonnes per year — sufficient for more than a million electric vehicles or over 1,000 offshore wind turbines — with plans to scale to 5,000 tonnes annually as demand rises. The plant will produce high-performance permanent magnets (commonly NdFeB) used in EV traction motors and wind turbine generators, and sits adjacent to Neo’s existing rare-earth separation operations.
The investment aligns with EU goals to increase domestic critical-minerals processing to around 40% by 2030 and reduce heavy dependence on Chinese supplies; Neo received an EU grant of up to €18.7 million to support the project. Neo has already signed supply agreements with German automotive suppliers Schaeffler and Bosch, securing a portion of initial output. European leaders described the facility as strategically important and cost-efficient for Western magnet manufacturing, highlighting its role in diversifying supply chains for clean-energy technologies.